Differentiate in Commodity Markets - Fasttrack Solutions · Differentiate in Commodity Markets...

Executive Overview

© 2014 SAP AG or an SAP affiliate company. All rights reserved.

Mill Products

Differentiate in Commodity Markets

Executive

Summary

SAP Solutions SAP Innovations References Contact Us


2 / 40 © 2014 SAP AG or an SAP affiliate company.

All rights reserved.

Differentiate in Commodity Markets

Market demand is cyclical and slowing down globally. Production overcapacity, high

energy costs, commodity price volatility, and regulatory requirements expose mill

products companies to increased risk and force them to control costs.

The population in emerging markets is growing constantly, increasing in wealth and consumption.

Mill products companies are profiting from this trend by providing products at the first level of

consumption. But raw material prices are increasing and displaying increased volatility, trends that

create a very competitive business environment for mill products companies, with increased risk of

higher prices and lower margins. In an attempt to secure raw material supplies and reduce

commodity price risk, commodity customers are engaging in mergers and acquisitions. At the

same time, there is an increased focus on hedging of raw material and energy supplies.

In addition, commodity suppliers must monitor increasing regulatory requirements and efficiently

manage their responses to minimize the cost of compliance and the risk of supply chain disruption.

The result of these developments is the increased complexity of supply networks. A responsive

network that meets demands, proactively manages supply chain risks, and responds in real time to

supply chain events is essential. Competitiveness and long-term success now depend not only on

low price but a high level of customer satisfaction as well.

Executive

Summary


Commoditized Products

Market Situation

Business Priorities

SAP Innovations



Manage the network, achieve profitability, and limit risk.

Fulfill customer order expectations – including products that meet specifications and on-time

delivery demands – at low cost.

Achieve maximum return on assets and increase margins.

Manage production and logistics efficiently to stay competitive, secure profitability, and win in a

commodity market.

Excel in the Market with Commoditized Products

SAP solutions help promote sustainable growth, profitability, and stakeholder

recognition by assisting users in optimizing asset performance, order fulfillment,

and risk management.

Best-Run Mill Products


Market Situation

Business Priorities

SAP Innovations

Executive

Summary


http://www.youtube.com/watch?v=Q6KtPTXsK9k



Best-run mill products companies focus on the needs of their global customers. To

help ensure their competitiveness, they strive to develop a responsive supply chain

and efficient, reliable production at low costs.

Priorities of Best-Run Mill Products Companies

Understanding the value drivers for each of these priorities is key to executing as a

best-run mill products company.

Profit-Driven Supply Chain

Plant and Asset Operations

Excellence

Sustainable Customer Relationships

Human Resources

Finance

Procurement

Information Technology

Technology and Platform


Market Situation

Business Priorities

SAP Innovations

Executive

Summary




SAP Innovations

Mill products companies struggle with overcapacity, rationalization, mergers, and

acquisitions. They must translate the latest IT advances into process innovations

while providing current service levels without disruption to the business.

SAP is making significant investments in five distinct technology areas – applications, analytics,

Big Data, mobile, and cloud – to help mill products companies compress sales cycle times,

minimize time to profit for new projects, and reduce manufacturing and supply chain costs.

Analytics and Big Data

Companies can maximize return on assets by using breakthrough analytics solutions from SAP, like

the SAP HANA platform. For example, SAP HANA helps track, trace, and understand offerings at

the characteristic level, to rapidly suggest alternative products.

Mobile

Mobile apps offered by SAP enable operations to run faster and smoother by providing employees

with access to critical information anytime, anywhere and allowing them to capture data on the spot.

Cloud

Cloud solutions from SAP and its partners provide new ways to deliver extraordinary potential for

customers to run their businesses better and faster. They offer low-cost and low-risk deployment

while providing flexibility, scalability, and integration across end-to-end business processes.


Market Situation

Business Priorities

SAP Innovations

Executive

Summary




Differentiate in commodity markets.

Mill Products Value Map


SAP Solutions


Human Resources

Customer Relationships

Finance


Procurement


Executive

Summary



Integrated Business Planning

Supply Chain Planning

Inventory Visibility and Order Promising

Transportation and Warehouse

Management


Market-Driven Segmentation

Sales Performance and Enablement

B2B Commerce

Streamlined Service


Excellence

Production Execution and Visibility

Asset Visibility and Performance

Asset Operations and Maintenance

Environment, Health, and Safety

Technology

and Platform

Human

Resources Core Human Resources

and Payroll Talent Management

Time and Attendance

Management

Workforce Planning

and Analytics

Finance Financial Planning and

Analysis

Accounting and

Financial Close

Treasury and Financial

Risk Management

Collaborative Finance

Operations

Enterprise Risk and

Compliance Management

Procurement Strategic Sourcing and

Supplier Management

Procure to Pay with

Business Network

Collaboration

Business Network

Extensions for

Procure to Pay

Information

Technology Application Lifecycle

Management

IT Infrastructure

Management

IT Portfolio and Project

Management IT Service Management

IT Strategy and

Governance

Enterprise

Mobility Big Data

Real-Time

Enterprise

Real-Time

Analytics

Enterprise

Information

Management

Application

Integration Cloud Solutions

Supply Chain Monitoring

Commodity Management

Energy and Environmental Resource

Management

Quality Management and Compliance

Order and Contract Management

for Configurable Products



Mill products companies face major challenges in

managing their complex supply chains. Mergers and

acquisitions and globally dispersed sites require robust

supply chain management. On-time delivery is critical

to survival.


Mill products companies are experiencing

intense economic change. Networks are

becoming more complex. Companies are

subcontracting and outsourcing operations.

Customers expect on-time delivery in full. Order

cycles are becoming shorter. Management

of the whole network – integrated planning,

execution, and management of all plant

activities associated with sourcing, procurement,

manufacturing, and logistics management – is

becoming critical to success.

The ability to answer customer requests in a

fast, precise, and reliable manner presents

an opportunity to improve sales margins by

increasing customer confidence.

Fluctuations of raw materials and energy

present another opportunity for supply chain

profitability. Even small price differences can

have significant impact on overall profitability.

A well-managed supply chain is the key to

better control, profitability, and competitiveness.

96% On-time delivery performance

reported by top 25%

companies, versus 89% by

average organizations in mill

products industry

Source: SAP Performance

Benchmarking

Priorities


SAP Solutions

SAP Solutions

Executive

Summary


https://valuemanagement.sap.com/disclaimer/



Benefits

Flexible sales and operations planning

Better delivery performance

Increased customer satisfaction

Clear global view of inventory

Lower financial risk

Lower production and transportation costs


Manage the supply chain from purchase to delivery at customer sites.

Stay profitable and competitive by managing the supply chain proactively with

real-time insights. Focus on customer satisfaction while controlling risk and costs.

6% Higher on-time delivery

performance for mill products

companies that integrate

order promising with key

trading partners


Benchmarking

Integrated Business

Planning Use an efficient analysis of Big Data to improve forecasting and planning.

Supply Chain Planning Manage supply chains based on accurate real-time data to keep risk low and

maintain profitability.

Inventory Visibility and

Order Promising

Provide flexible but precise responses to customer requirements with easier

access to the real status of inventory and production.

Transportation and

Warehouse Management Increase customer satisfaction by producing and delivering on time.

Supply Chain Monitoring

Monitor the supply chain to enable real-time analysis, insight into segmented

business policies, and visibility to alerts based on key performance indicators

(KPIs), performance, and current supply chain setup.

Commodity Management Diminish financial risk by controlling the commodity price risk.

Priorities

SAP Solutions


SAP Solutions

Executive

Summary





Mill companies must maximize the utilization,

performance, and output of their highly capital-intensive

assets, while keeping track of costs, quality, energy

consumption, worker safety, and the environment.

Plant and Asset Operations Excellence

Holistically managed modern mill operations

can run sustainably only through the close

integration of manufacturing, maintenance, and

operational risk-management activities. To

manage assets efficiently and maximize

returns, mill companies must streamline

manufacturing and maintenance processes

across the value chain via end-to-end business

process integration and automation.

To maintain a competitive edge, mill companies

must continuously improve efficiencies in the

manufacturing process. Clear visibility into all

aspects of operations supports faster and more

informed decision making. Machines and

qualified personnel are key elements for

success, as are detailed tracking of products

during production, delivery, and customer use.

14% Higher operating equipment

effectiveness reported by top

25% companies than average

organization in mill products

industry


Benchmarking

Priorities


SAP Solutions

SAP Solutions

Executive

Summary





Benefits

Maximize sustainable return on assets

Gain high performance and low costs

Consistently create best products

Improve worker safety

Track origins

Lower energy consumption


Maximize return on assets with higher use while enabling safe operations.

An effective asset management program minimizes overall maintenance costs and

simultaneously increases worker safety. This is the base for efficient production.

20% Higher asset capacity

utilization reported by mill

products organizations with

mature plant maintenance

processes


Benchmarking

Production Execution and Visibility

Gain greater visibility into and control over manufacturing by integrating plant-floor systems with core enterprise applications.

Asset Visibility and Performance

Provide visibility into equipment performance, condition, and status, enabling prompt corrective actions.

Asset Operations and Maintenance

Enable holistic asset and maintenance management by integrating and automating all maintenance-related data, processes, and reporting.

Environment, Health, and Safety

Assess and proactively reduce risks to enable safe operations and business continuity.

Energy and Environmental Resource Management

Improve operational visibility to reduce energy, environmental footprint, and related costs.

Quality Management and Compliance

Provide high-quality products produced in a compliant way from raw material to delivery.

Priorities

SAP Solutions


SAP Solutions

Executive

Summary





In today’s dynamic business environment, long-term

customer relationships are key to sustainable success.

The sales force needs to know customers in detail. The

ability to cope with the wide variety of product

configurations is a must.


Digitally plugged in and always on, today’s

customers can obtain information about a

company, products, services, sellers, and

competitors – all in an instant. This changes the

rules of engagement with customers.

Prospects and customers can now drive the

conversation in disparate directions. To keep

pace, organizations need to align their selling

system to increasingly empowered customers.

Grouping customers according to potential and

behavior is important to leverage the chances

of mobile sales, offer self-services where

applicable, and focus on the most important

customers with direct sales efforts.

Sales executives need a true 360-degree view

of the customer that applies both structured and

unstructured data from all relevant sources.

They need to foster greater collaboration both

inside and outside the organization. And they

need the power to access key information

anywhere, anytime. 2.5x Lower customer churn

observed by top 25%

companies than bottom 25%

organizations in mill products

industry


Benchmarking

Priorities


SAP Solutions

SAP Solutions

Executive

Summary





Benefits

Identify pipeline velocity issues up front

Improve decisions with predictive analysis

Enhance customer familiarity

Increase customer retention

Improve sales-to-delivery performance


Achieve sustainable sales with 360-degree customer insight and fulfillment.

See the customer more clearly than ever. Handle personal interactions

simultaneously along all steps in the sales cycle via the Web and other channels.

29% Lower order receipt to ship

time for organizations where

key order management

metrics are analyzed across

dimensions like customer and

product (MTO model)


Benchmarking

Market-Driven

Segmentation Create accurate forecasts, monitor real-time pipeline performance, manage

budgets, and allocate territory resources.

Sales Performance

and Enablement Manage the order-to-cash process for configurable products from end to end.

B2B Commerce Process orders and customize offers in real time.

Streamlined Service Provide prompt, targeted customer service to increase their satisfaction while

keeping costs low.

Order and Contract

Management for

Configurable Products

Find the resources, information, and context needed to close each sale. Motivate

partners to sell more with better information access. Deliver a delightful online

buying experience and manage all interactions from one place.

Priorities

SAP Solutions


SAP Solutions

Executive

Summary





Talent is a true competitive advantage today and critical

when aligning business strategy and execution. Best-run

organizations achieve profitable growth by leveraging

their talent and out-innovating the competition.

Human Resources

For organizational growth and an agile response

to business change, organizations must give

people the knowledge and technology to

facilitate innovation. They must also move into

new markets, adapting to local practices and

tapping the right local talent. In addition, they

must identify and retain new talent acquired

through mergers and acquisitions.

Organizations that respond to challenges

quickly with the right talent in the right places

will have a unique advantage in the market-

place that can help them outperform the

competition.

SAP solutions help organizations attract and

empower innovative talent and then integrate

and leverage the acquired talent. HR depart-

ments can find, deploy, and retain talent

globally.

32% Higher revenue per employee

for mill products companies

where the HR system

supports a balanced score-

card and is integrated to

performance appraisal


Benchmarking

Priorities

Human Resources

SAP Solutions

SAP Solutions

Executive

Summary





Benefits

Align people to organizational strategies

Support global expansion into new markets

Improve productivity and engagement

Gain real-time insight into business needs

Human Resources

The new world of work.

Enable growth and sustainability by providing choice in HR services. Couple global

capabilities, integration, and real-time insight with mobile-device support.

8% Higher employee engagement

by implementing training

programs that develop the

workforce in line with

organizational objectives


Benchmarking

Core Human

Resources and Payroll Consolidate HR and payroll processes on a common global platform for better

workforce data and legal compliance.

Talent Management Improve strategic alignment, increase productivity, and accelerate results by

identifying, developing, motivating, and retaining talent.

Time and Attendance

Management Streamline time management processes to enhance resource effectiveness and

visibility into and control over labor costs.

Workforce Planning

and Analytics Identify and analyze talent gaps and streamline workforce planning for efficient

and effective management of workforce demand and supply.

Priorities

SAP Solutions

Human Resources

SAP Solutions

Executive

Summary





SAP Solutions CFOs implement best practices to strike a balance

between sound stewardship and value creation, while

walking the fine line between entrepreneurship and

caution. At the same time, they need to view the right

information, whether it’s the big picture, exacting detail,

or somewhere in between.

Finance

During one of the most difficult and volatile

economies of modern times, financial

organizations are struggling to achieve

excellence.

On a daily basis, they encounter persistent

challenges, such as ongoing market instability,

ever-changing regulations, and increasing

pressure on margins. Plus, the speed of

financial operations is accelerating, requiring

access to insight on the go – anytime and

anywhere.

Finance executives are tasked with cutting

costs and providing insight into the financial

impact of decisions. To achieve these goals in

this high-pressure environment, finance

organizations must rely on best practices that

help them achieve excellence and drive

business results.

With the right solutions, finance organizations

can excel and become a strategic advisor to

the entire business. They can help ensure

regulatory compliance and effective risk

management, outperform financial objectives,

create sustainable value, and deliver superior

service at reduced cost.

3x Lower finance cost as a

percentage of revenue for

top-quartile organizations

versus bottom-quartile

organizations


Benchmarking

Priorities

Finance

SAP Solutions

Executive

Summary





Benefits

Provide forward-looking insights

Deliver accurate financial data

Enhance efficiency at lower cost

Help ensure regulatory compliance

Finance

Excel with best practices that facilitate 360-degree processes.

In the face of sustained market volatility, increasingly complex regulatory require-

ments, and growing pressure on margins, financial organizations must enable their

staff to collaborate more efficiently and use business insight more effectively.

76% Higher operating margins,

where financial systems

provide historical and forward-

looking views into financial

and operational performance


Benchmarking

Financial Planning

and Analysis

Define and execute organizational strategies, manage financial plans and

forecasts, and increase profitability.

Accounting and

Financial Close

Deliver a fast, accurate, compliant close and regulatory disclosures with less

cost and effort.

Treasury and Financial

Risk Management

Achieve greater insight and control over complex processes for managing

cash, liquidity, and risk.

Collaborative Finance

Operations

Automate transactional processes to improve efficiency, effectiveness,

collaboration, and service at lower costs.

Enterprise Risk and

Compliance Management

Protect revenue and optimize financial performance with risk and compliance

management.

Priorities

SAP Solutions

Executive

Summary


Finance

SAP Solutions




While companies often focus on revenue, procurement

savings can increase profits with far higher impact. The

key to maximizing procurement’s success in this critical

role is to deliver consistent quality, savings, and compli-

ance over time. That calls for innovative solutions that

boost efficiency and insight.

Procurement

Procurement leaders set a baseline for success

by implementing best practices, excelling in

category expertise, and working with key

stakeholders on cost-control programs.

While savings is always a priority, new

objectives have emerged as well. Procurement

must manage supplier risk and performance,

improve process efficiency, drive innovation,

and ensure sustainability practices.

You need solutions that give you the tools to

cut costs, as well as add value. These tools

need to support processes including spend

analysis, sourcing, contract management,

operational procurement, services procurement

supplier information, risk and performance

management, and invoice management. At the

same time, procurement plays a role in helping

finance optimize the company’s cash position

through discount management programs.

These tools, when connected to and facilitated

by an unparalleled collaborative business

network, drive real-time insight and efficiency

that can only be delivered through the “power

of many.”

60% Improvement in annual

average savings by

leveraging technology for

sourcing and procurement

processes


Benchmarking

Priorities

Procurement

SAP Solutions

Executive

Summary


SAP Solutions




Benefits

Optimize spend under management

Increase average annual savings

Cut FTEs per billion in spend

Drive innovation with suppliers

Reduce cost and risk

Accelerate turnaround

Procurement

Drive sustainable savings while supporting innovation.

Ensure best practices within the source-to-pay process in the cloud, while

leveraging the “power of many” through network collaboration to realize greater

efficiency, gain real-time insights, and achieve true procurement excellence.

55% Lower FTE per billion in

spending for companies

conducting electronic supplier

collaboration on a network


Benchmarking

Strategic Sourcing

and Supplier

Management

Find new suppliers through the Ariba Network, and manage these relationships

through supplier management solutions. Identify and act on sourcing opportunities,

and create favorable, low-risk supply contracts.

Procure to Pay

with Business

Network

Collaboration

Realize savings with compliant, user-friendly self-service procurement; services

procurement; and plan-driven procurement. Collaborating on the Ariba Network

makes catalog management, purchase order collaboration, and invoice-related

transactions even more efficient.

Business Network

Extensions for

Procure to Pay

Leverage the Ariba Network even further to drive advanced invoice automation and

exception management. Manage cash by taking advantage of dynamic discounting

opportunities.

Priorities

SAP Solutions

Executive

Summary


Procurement

SAP Solutions




Business enterprises should forge strategic business

partnerships with their IT organizations by aligning goals.

And business-oriented IT should maximize efficiency and

responsiveness by running IT like a business.


Research shows that lines of business want to

ascertain the value of their IT investments,

which means that IT organizations no longer

decide alone which IT projects to fund.

The challenge is that IT management is often

seen as just running the technical landscape.

To become more relevant to an enterprise, IT

needs to reposition itself to run like a business.

SAP offers an integrated portfolio of solutions

to do just that. New technologies like mobile, in-

memory, and cloud computing generate value

to a business in an unprecedented way.

However, these new technologies also make IT

landscapes more complex, requiring more tools

to manage them. By leveraging SAP solutions

along with following best practices – CIOs,

CEOs, other executives, management, and

employees can tap into and help ensure effi-

ciency, continuity, and responsiveness, making

IT more strategic to the business.

Priorities


SAP Solutions

Executive

Summary


SAP Solutions



Benefits

Better align IT to business strategy

Shorten IT delivery and business cycles

Maximize return on IT

Reduce system upgrade and operation costs

Lower risk mitigation cost and revenue loss

Reduce critical business system downtime


Evaluate and control risk, enable flexibility and scale, control and optimize

costs, and maximize strategic value.

Promote business continuity, drive efficiency, and increase IT responsiveness to

business objectives – with IT management solutions designed for any size business.

Application Lifecycle

Management

Use application lifecycle management best practices, methods, and services

based on Information Technology Infrastructure Library (ITIL).

IT Infrastructure

Management Monitor all network assets to integrate infrastructure and application lifecycles.

IT Portfolio and

Project Management Manage projects and align the portfolio to drive innovation efficiency.

IT Service

Management

Align service-desk operations with service-level agreements (SLAs), resolve SLA

incidents fast, and adopt ITIL best practices to meet evolving business goals.

IT Strategy and

Governance

Track IT costs and risks and map risk and compliance activities to business

impact.

Priorities

SAP Solutions

Executive

Summary



SAP Solutions



Technology solutions can make the difference between

surviving and thriving. And businesses know that they

need to innovate to drive transformation. Technology and

platform solutions from SAP enable quick adoption of

cutting-edge technology to run the business better and

faster with agility and innovation.


Users expect to run a real-time business with

collective insights from real-time analytics

for better decision making, prioritization,

forecasting and modeling of outcomes, and

access to applications from the latest mobile

devices. They demand that these capabilities

seamlessly integrate with their favorite social

platforms, allowing cross-stakeholder

collaboration.

At the same time, data volumes are exploding

while the window for capitalizing on opportunities

is shrinking. Users must be empowered with

information from real-time applications available

securely on any device. And developers need a

platform to innovate faster.

SAP enables the real-time enterprise with an

innovative data platform to power a new class

of real-time analytics and applications that give

businesses a true competitive advantage.

Companies can harness the value of Big Data,

while improving governance with timely,

trusted, and consistent information.

Plus, SAP provides a comprehensive set of

cloud solutions, including line-of-business

applications as well as social and business

network collaboration. SAP HANA Cloud

Platform enables customers to build new apps

or extend and customize existing ones with

managed and subscription-based services.

Priorities


SAP Solutions

Executive

Summary


SAP Solutions



Benefits

Enable real-time operations

Lower time to value

Turn data into an enterprise asset

Innovate customer engagement


Drive transformation and help the business thrive with technology.

Technology and platform solutions from SAP enable the real-time enterprise by

unleashing the power of collective insights, empowering developers to innovate,

and unwiring the business.

Big Data Achieve tangible results on every business priority by accelerating how users acquire, analyze, act on, and apply insights continuously.

Real-Time Enterprise Power a new class of real-time analytics and applications with an innovative data platform to give businesses a true competitive advantage.

Real-Time Analytics Unleash collective insight through enterprise business intelligence, agile visualizations, and advanced analytics on any device and platform.

Enterprise Mobility Deliver a platform for mobile development and security to innovate employee and consumer apps for any mobile device.

Enterprise Information Management

Maximize the value of business data – both structured and unstructured – across the organization.

Application Integration Integrate application delivery to maximize agility across people, processes, and systems – within and beyond the SAP software landscape.

Cloud Solutions Extend existing on-premise apps and infrastructure to enable new innovative business processes, gain greater insights, and unlock new business value.

Priorities

SAP Solutions

Executive

Summary



SAP Solutions



Mobile

Mobile apps from SAP enable all aspects of company operations to run faster and smoother by

providing employees with access to critical information anytime, anywhere and at the same time

allow them to capture data on the spot – eliminating paper-based processes and bringing data in-stantly into the back-end software system where all stakeholders will have immediate access to it.

Cloud

The cloud solutions from SAP and its partners provide a new way to deliver extraordinary potential

for mill customers to run their businesses better and faster.

Analytics

Companies on the road to becoming best-run organizations need to know how their current operations

are performing and set appropriate performance targets. The complete set of business analytics

tools and valuable business content from SAP deliver the means to become best-run businesses.

Big Data

Big Data creates big opportunities. Maximizing asset availability while reducing maintenance costs

is one example, but also in areas of finance, commodities, and complex reporting requirements,

the SAP HANA platform can enable new business processes.

Accelerating data processing, analysis, and provisioning

via new technologies, such as in-memory computing and

mobile apps, and leveraging new cloud-based deployment

options provide unprecedented opportunities to the

industry for transforming business models and position

for sustainable growth.

SAP Innovations

95% Of mill products companies

recognize technology

innovations will impact

business, while only 40%

are ready to realize benefit

from them


Benchmarking

Applications

SAP Innovations

The SAP HANA Platform

Mobile

Executive

Summary


Analytics

Cloud





Make better decisions supported by real-time information, including forecasting, stock coverage,

and supply projection. Achieve process efficiency in procurement processes. Optimize purchases

in a comprehensive, complete, and real-time working environment allowing complete visibility into end-to-end procurement activities.


Benefit from more frequent and precise reorders enabled by faster material-requirements-planning

runs in shorter cycles. Readily check production-order readiness for better production sequences.

Make up-to-date scheduling of maintenance operations through more frequent planning. Improve

efficiency with real-time stock insight and inventory monitoring.


Create additional sales opportunities using context-based recommendations from real-time data.

Identify the most profitable customers, using account intelligence analytics, and focus on them.

Accelerate the quote management process. Optimize the payment and collections process.

SAP Business Suite software powered by SAP HANA

enables mill products companies to get instant, 360-

degree insights into customer data to offer them the right

products at the right time. These products are efficiently

planned and produced faster and better with SAP

Business Suite – at lower cost.

SAP Business Suite powered by SAP HANA

Executive

Summary


Applications

SAP Innovations


Mobile

Analytics

Cloud



Maximize Return on Assets

Using the SAP HANA platform and analytics solutions from SAP, companies can reduce

maintenance costs while increasing asset availability. They can also optimize production output by

tracking overall equipment effectiveness, from plant level to work centers, to determine where inefficiencies are and how to alleviate them.

Deliver on Customer Expectations

Being able to visualize large amounts of data creates unprecedented visibility into inventory and

supply chain performance and helps companies deliver on customer expectations in quantity,

quality, and on-time delivery. They can use SAP HANA to track, trace, and understand their

products better at the characteristic level, and they can find and spontaneously offer alternative

products.

Mitigate Risk and Uncertainty

Using SAP HANA to combine Big Data from external and internal sources to understand future

commodity price trends, companies can gain insight into financial transitions to identify and deter

fraudulent activities. They also gain confidence in strategic decisions by tracking execution.

Manufacturing companies have Big Data issues. Studies

show that manufacturing data has increased up to 1,000

times in the last 10 years. Manufacturers that can handle

Big Data can gain advantages in manufacturing, supply

chain, and financial processes.


53% Of organizations report a big

gap between the availability of

Big Data and their ability to

analyze it for insights


Benchmarking

Executive

Summary


Applications

SAP Innovations


Mobile

Analytics

Cloud




Much of the world today operates in a mobile environment, as business processes no longer

require employee access to physical desktops or landlines. Employees, customers, partners, and

the rest of the business ecosystem have become mobile. Enterprise mobility makes business

processes more efficient and more cost-effective for executives, line-of-business managers,

business analysts, and individual users.

Mobile apps can make this happen within the mill products ecosystem. In sales, orders can be

entered quickly, while product availability, pricing, and delivery dates can be confirmed on the spot.

With mobile apps, employees have visibility into the supply chain anytime, anywhere. They can

verify that all operations are running smoothly and, if not, react quickly and effectively to any

exceptions or disruptions. In manufacturing, mobile apps enhance operations and provide easier

access to work order, inventory, shift change, and scheduling data.

Enterprise mobility also allows mill products companies to provide exceptional customer service while lowering delivery costs, thereby increasing customer loyalty and improving profit margins.

Enterprise mobility is a must-have for the mill products

industry. Executives, sales representatives, shop floor,

and maintenance workers are increasingly adopting

mobile technology as they clearly recognize the

opportunities to bring more efficiency, simplicity, and

speed to their daily work.

Mobile

22% Fewer days in inventory

where a higher percentage of

warehouse and inventory

management employees have

mobile access


Benchmarking

Executive

Summary


Applications

SAP Innovations


Mobile

Analytics

Cloud




Maximize Return on Assets and Increase Margins

Constrained by shrinking operational budgets, business managers need to get the most from

investments in machinery. SAP Asset Analytics software uses data from the SAP Enterprise Asset

Management solution to assess risk and identify bottlenecks and root causes.

Deliver to Customer Expectation

Global operations require extensive supply chains that must be managed to meet customer

expectations. The SAP Supply Chain Performance Management analytic application provides

transparency and early warning of issues and helps improve customer satisfaction while reducing

working capital.

Accurate net margin is difficult to calculate. Best-run businesses have transparency into

operational costs and can improve profitability by simulating what-if scenarios.

Make Decisions Confidently and Execute Strategies

Balance customer expectations with efficient production via sales and operations planning (S&OP).

Align sales forecasts with production plans. S&OP allows collaboratively planning, iteration, and

simulation for achieving an optimally aligned strategic plan.

Business value is determined by consistently meeting

customer demands for quality and on-time delivery.

But lacking knowledge about current operational

performance, how do companies improve? SAP delivers

key analytic and business intelligence tools to support

the journey to best-run performance.

Analytics

20% Higher availability of real-time,

predictive insights when a

higher percentage of strategic

key performance indicators

are tracked using business

intelligence tools


Benchmarking

Executive

Summary


Applications

SAP Innovations


Mobile

Analytics

Cloud





Solutions from Quadrem Network and Ariba, an SAP company, bring access to a vast network of

customers and suppliers.

The SAP Jam social software platform brings together people, information, and processes for secure collaboration. On-demand solutions enhance supply chain performance and include functionality for

social networking, strategic sourcing, contract lifecycle management, and supplier management.

Operations Excellence

The SAP Product Safety Management OnDemand solution promotes compliance with product

regulations and has regulatory content built in.

BizX Suite from SuccessFactors, an SAP company, allows users to set up local mill operations

instantly; hire and reward employees worldwide; and reduce costs and gain organizational flexibility while promoting compliance and safety.


The SAP Sales OnDemand mobile app enables users to efficiently manage customer accounts.

The sales force can spend more time selling and less time on administrative tasks, with integration

with the SAP ERP application or external applications.

SAP and its partners provide cloud solutions that open

up new possibilities for mill products companies to run

their businesses better and more economically and

gain access to a vast network of global customers and

suppliers, even in remote areas on all continents.

Cloud

85% Believe cloud will have a

major impact on their

organizations, through

efficiencies, innovation, or

competitive differentiation


Benchmarking

Executive

Summary


Applications

SAP Innovations


Mobile

Analytics

Cloud




10 of the top 10 paper producers run SAP.

9 of the top 10 copper producers run SAP.

7 of the top 10 aluminum producers run SAP.

7 of the top 10 steel producers in Europe and America run SAP.

Best-Run Customers

ArcelorMittal

Best-Run Customers

Concretos Cruz Azul

Mohawk Carpet

HBIS Tangshan

Vallourec

Woodgrain Millwork

Votorantim Celulose

Why SAP?

Executive

Summary




SAP co-innovates with leading mill products companies to identify priorities

and drive new ideas. Member companies lead co-innovation in areas like

manufacturing, plant maintenance, supply chain planning, and transportation

management.

Customer Co-Innovation

Advisory Councils

CIOs of top mill products companies gather to discuss innovation, technology, and best practices

on managing in a volatile and complex economic environment.

Co-Innovation Partners

Consulting and system-integration partners

Value-added resellers in, for example, supply chain optimization, price and margin

management, or enterprise content management

Executive

Summary


ArcelorMittal

Best-Run Customers

Concretos Cruz Azul

Mohawk Carpet

HBIS Tangshan

Vallourec

Woodgrain Millwork

Votorantim Celulose

Why SAP?



“The ability to easily access employees’ health indicators and make sure

that the occupational health processes are being conducted accordingly

shows us, on a daily basis, the benefits of using SAP EHS Management.”

Enilson Miranda Santos, Personnel Administration Manager,

ArcelorMittal Brasil

ArcelorMittal Brasil is one of Latin America’s main steel-

making companies with a significant presence in the long

and flat carbon steel sectors.

The company chose the SAP Environment, Health, and Safety

Management application to replace its disparate collection of legacy

health and safety solutions. As a result, ArcelorMittal Brasil standardized

its processes and set a benchmark for excellence within the global

ArcelorMittal group.

Key Benefits

Greater access to consolidated environment, health, and safety (EHS)

data with online analytics and management reports

Single solution for standardized EHS management

Real-time integration of EHS practices throughout facilities and

business areas

Improved collaboration with health service providers, clinical labs, and

insurance companies

80% Less time to complete accident investigations and reports

50% Improved effectiveness of medical exam programs

50% Improved effectiveness of EHS action plans

Executive

Summary


ArcelorMittal

Best-Run Customers

Concretos Cruz Azul

Mohawk Carpet

HBIS Tangshan

Vallourec

Woodgrain Millwork

Votorantim Celulose

Why SAP?



“The accurate, timely, and high-quality information we get thanks to our SAP

implementation gives us confidence and assurance to move forward in

decision making.”

Humberto Tapia, IT Manager, Concretos Cruz Azul

Concretos Cruz Azul revolutionizes its cost system for

improved profitability.

Concretos Cruz Azul is a 100% Mexican-owned company producing and

distributing premixed concrete. It is now the third-most-important

company in Mexico in this sector and has over 40 concrete batching

plants. To gain accurate control of information, Concretos Cruz Azul

chose the SAP Profitability and Cost Management application.

Key Benefits

Granulated profitability, thanks to cost system implementation with

activity-based costing methodology

Better alignment between production and purchase

Production planning based on costs and operating expenses

33% Fewer staff involved in cost processes

2% Lowered level of unprofitable sales

8% Increased efficiency in production

Executive

Summary


ArcelorMittal

Best-Run Customers

Concretos Cruz Azul

Mohawk Carpet

HBIS Tangshan

Vallourec

Woodgrain Millwork

Votorantim Celulose

Why SAP?



“The new plant maintenance solution has helped us improve the condition of

our equipment, which means fewer malfunctions and accidents. Not only

does this increase safety for our workers, it saves us money as well.”

Wang Lanyu, Executive Deputy General Manager, HBIS Tangshan Iron and

Steel Group Co. Ltd.

The iron and steel industry is facing tough times in today’s

marketplace.

In order to meet quality demands, management needs tools to better

monitor equipment, materials, and budgets. HBIS Tangshan Iron and

Steel deployed the SAP Enterprise Asset Management solution with its

existing SAP ERP application, resulting in fewer spare parts and lower

maintenance and overhaul costs.

Key Benefits

Automated, standardized, and transparent equipment management

Better management of spare parts resulting in lower inventory levels

More efficient budget control for easier monitoring and faster

distribution

425 million Yuan saved in maintenance costs

59% Reduction in overhaul costs

within 6 months

21% Fewer spare parts consumed per ton of steel

Executive

Summary


ArcelorMittal

Best-Run Customers

Concretos Cruz Azul

Mohawk Carpet

HBIS Tangshan

Vallourec

Woodgrain Millwork

Votorantim Celulose

Why SAP?



“SAP CRM, delivered by Liquid Analytics, has dramatically improved the

Mohawk customer experience, adding great value to our business. It helps

our reps focus on the most important items for each individual customer,

enabling a more personalized conversation.”

Brian Nooney, Director of Sales Solutions, Mohawk Industries Inc.

There are so many things to consider when picking

out flooring or carpet. Apart from material, color, and

style, there are questions about cushion, twist, glaze,

and underlying slab.

To target customers for specific pricing and promotions,

Mohawk developed a mobile app to run with the SAP Customer

Relationship Management (SAP CRM) application. The sales

team now has a complete customer view, plus analytics and

sales tools, online or offline, right on their iPads.

Key Benefits

More personalized relationship between representatives and

customers

Greater productivity, thanks to complete and timely access to

customer information on an iPad, both online and offline

Stronger sales and a better customer experience by allowing

sales teams to create more tailored customer interactions

and sales plans

99% Fewer quoting errors

US$500,000 Revenue increase, thanks to

greater quote efficiency

30% Less time spent by sales reps on administrative work each week

Executive

Summary


ArcelorMittal

Best-Run Customers

Concretos Cruz Azul

Mohawk Carpet

HBIS Tangshan

Vallourec

Woodgrain Millwork

Votorantim Celulose

Why SAP?



“The speed of implementation, ease of use, and cost savings associated

with SuccessFactors software have made all the difference to our HR

experiences and ability to perform as a global company.”

Philippe Ferrie, Worldwide Employee Relations Coordinator and HRIS

Director, Vallourec

Vallourec is a world leader in premium tubular products for oil

and gas, energy production, and other industrial applications.

The company has tube production down to a fine science.

Vallourec needed common, efficient HR processes across its global

enterprise. With cloud-based SuccessFactors software as the basis,

the firm created standard, integrated HR cycles that greatly boosted

productivity. Implementation was much faster and less expensive than

with traditional software, and easy access to data in the SAP ERP

application was a key enabler.

Key Benefits

Increased HR staff productivity

Improved visibility into talent pools for succession planning

Increased employee loyalty and retention

99.7% Engagement in formal HR processes, up from 50%

30% Less time needed for performance reviews

5x–10x Less expensive implementation

Executive

Summary


ArcelorMittal

Best-Run Customers

Concretos Cruz Azul

Mohawk Carpet

HBIS Tangshan

Vallourec

Woodgrain Millwork

Votorantim Celulose

Why SAP?



“At VCP, we have evolved from a risk-correction culture to a risk-mitigation

culture. Now, all our business areas are fully aware of the potential impact of

unmanaged risk.”

Celso Yao, Risk Manager, Votorantim Celulose e Papel S.A.

Votorantim Celulose e Papel S.A. (VCP) – one of Brazil’s

largest pulp and paper producers – is known for its leading

business practices. This award-winning company manages

the entire process, from growing the pulpwood to distributing

the finished goods to more than 50 countries worldwide.

Manual risk management controls were making it difficult for the

company to maintain the level of access security required by Sarbanes-

Oxley (SOX) regulations. Reliance on lengthy spreadsheets, for example,

limited visibility. To institute a new access governance model, company

executives chose the SAP Access Control application.

Key Benefits

Certified SOX compliance

Company-wide awareness of the importance of effective risk

management

Ability to identify access vulnerabilities and exception cases

Automated, rules-based tools used across corporation, reducing costs

91% Reduction in

number of access

conflicts

74% Faster audit cycles

Executive

Summary


ArcelorMittal

Best-Run Customers

Concretos Cruz Azul

Mohawk Carpet

HBIS Tangshan

Vallourec

Woodgrain Millwork

Votorantim Celulose

Why SAP?



“Based on firsthand experience with SAP ERP HCM, I can say without doubt

that we made an excellent decision in choosing SAP as our solution provider

and BestXperts as our implementation partner.”

Connie Moylan, Chief Information Officer, Woodgrain Millwork Inc.

With a significant number of employees located in 16 U.S.

manufacturing and distribution locations that service nearly

800 big-box retail stores, Woodgrain Millwork Inc. is one of

the world’s largest millwork companies.

To reduce cost and improve efficiency, Woodgrain standardized all

employees on a biweekly payroll-processing cycle with the SAP

ERP Human Capital Management (SAP ERP HCM) solution.

Key Benefits

Implemented the solution on time and 15.6% under budget

Avoided the expense of upgrading the legacy payroll application

Increased payroll volume while reducing payroll-processing cycle time

67% Faster payroll-processing cycle time

>90% Reduction in annual

payroll-processing

cost

30% Lower total cost of ownership over 5 years

Executive

Summary


ArcelorMittal

Best-Run Customers

Concretos Cruz Azul

Mohawk Carpet

HBIS Tangshan

Vallourec

Woodgrain Millwork

Votorantim Celulose

Why SAP?



Leveraging the latest technology innovations, SAP for Mill Products solutions

enable sustainable growth by safely optimizing asset performance, helping ensure

reliable and profitable order fulfillment, and limiting risk.

Tightly Integrated Business Solutions

SAP offers the most comprehensive portfolio of solutions for the mill products industry, enabling

companies to focus their key business processes and activities on assets and operations, while

monitoring risk and compliance.

Leveraging Key Breakthrough Innovations

The SAP solution portfolio is based on the industry’s most innovative technology foundation,

including the SAP HANA platform, mobile solutions, analytics, and cloud solutions. They enable

business process optimization and efficiency at the lowest possible cost.

40 Years of Delivering Value

The world’s leading mill products companies, across every major industry segment worldwide, rely

on SAP solutions to drive sustainable growth, profitability, and value to their customers.

Why SAP?

Executive

Summary


ArcelorMittal

Best-Run Customers

Concretos Cruz Azul

Mohawk Carpet

HBIS Tangshan

Vallourec

Woodgrain Millwork

Votorantim Celulose

Why SAP?



Benchmark Your Performance

Position your organization for dominance in this new economy with the business performance

benchmarking program from SAP – available free to SAP customers and select prospects.

The SAP benchmarking program has helped more than 3,000 organizations assess their

strengths, uncover areas for improvement, and identify best practices and IT strategies that

generate clear, tangible value – not someday, but today.

Go Live in Weeks

Here’s the fastest way to run your business better: our rapid-deployment solutions. In one

package, you get everything you need to be up and running quickly – including preconfigured

software and implementation services – in just weeks. With a defined scope and predictable

costs, there are no surprises.

Join Your Community of Practices

Every day, SAP Community Network (SCN) changes the way that thousands of SAP users work.

It lets members help one another solve problems, learn, and invent new ways to get things

done – faster. Find out how to connect with people, content, and resources.

Find Out More About How Your Organization Can

Become Best-Run

Visit valuemanagement.sap.com >>

Visit sap.com/solutions/rds >>

Visit scn.sap.com >>

Executive

Summary


https://websmp105.sap-ag.de/solutionpackages

https://valuemanagement.sap.com/

http://www.sap.com/solutions/rds

http://www.sdn.sap.com/irj/scn

Executive Overview


Mill Products

SAP Community Network

LinkedIn

Facebook

Twitter

Executive

Summary


CMP 29018 (14/01)


http://scn.sap.com/community/mining-and-mill-products

http://www.linkedin.com/groups?home=&gid=4532949&trk=anet_ug_hm

http://www.facebook.com/SAPMillProductsandMining

https://twitter.com/SAPMillMining


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Please see http://global12.sap.com/corporate-en/legal/copyright/index.epx for additional trademark information and notices.

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